Other Income, Net

3 Months Ended

Mar. 31, 2012

Other Income and Expenses [Abstract]

Other Income, Net

Other Income, Net

	Three Months Ended
	March 31,
	2012			2011
Cozaar®/Hyzaar® income	$	25		$	48
Royalty income	41			31
Interest income	23			28
Equity in earnings of affiliates, excluding exchange gains/losses	10			48
Net gain on sales of assets	5			6
Net exchange losses 1	(80		)	(143		)
Miscellaneous income and expenses, net 2	2			7
Total	$	26		$	25

¹ The company routinely uses foreign currency exchange contracts to offset its net exposures, by currency, related to the foreign currency-denominated monetary assets and liabilities. The objective of this program is to maintain an approximately balanced position in foreign currencies in order to minimize, on an after-tax basis, the effects of exchange rate changes on net monetary asset positions. The net pre-tax exchange gains and losses are recorded in other income, net and the related tax impact is recorded in provision for income taxes on the interim Consolidated Income Statements.

²   Miscellaneous income and expenses, net, generally includes interest items, insurance recoveries, litigation settlements and other items.